I am still fairly new to submitting SBIR proposals and I’m not quite clear on the 50% threshold for performance requirements specifically related to matching funds.
For Phase II, a minimum of one-half (50%) of the research and/or analytical work must be performed by the proposing firm. The percentage of work is measured by both direct and indirect costs.
Example, SBIR award $750k. We expect to have an additional $750k matched by a military partner. Is the matching funds subject to the minimum performance? If it is only the SBIR funds of the $1.5M we could use up to $1,125,000 on outside consultants, but if the limitation is on SBIR + matching our limitations on outside consultants is $750,000.
Any input would be helpful in our budgeting process.